Freddie Mac Announces New Offering of Guaranteed Structured Pass-Through K Certificates

Structured Securities Backed By Multifamily Mortgages

Jan 13, 2010, 09:48 ET from Freddie Mac

MCLEAN, Va., Jan. 13 /PRNewswire-FirstCall/ -- Freddie Mac (NYSE: FRE) today announced a new offering of Structured Pass-Through Certificates ("K Certificates"), multifamily mortgage-backed securities that help provide liquidity, stability and affordability to the nation's multifamily housing market. The company expects to offer approximately $1.1 billion in K Certificates ("K-005 Certificates"), which are anticipated to price on or about January 27, 2010, and settle on or about February 3, 2010.  

The K-005 Certificates will be offered to the market by a network of dealers led by Goldman, Sachs & Co. and J.P. Morgan Securities Inc. as Co-Lead Managers and Joint Bookrunners for the transaction.  Banc of America Securities LLC, Deutsche Bank Securities Inc. and Jefferies & Company, Inc. have been named as Co-Managers for the transaction.  The K-005 Certificates are backed by 70 recently originated multifamily mortgages and are guaranteed by Freddie Mac.  The loans were originated using Freddie Mac's Capital Markets Execution(SM) (CME) product.

David Brickman, vice president of Multifamily and CMBS Capital Markets for Freddie Mac, said, "We are very excited and pleased with the rapid growth of our Capital Markets Execution product and our ability to ring in the new year with the offering of our third series of K Certificates backed by CME mortgages. While this is our first deal in 2010, given our pipeline we expect to come to market every other month throughout 2010 with new deals, and thereby continue to provide greater liquidity to the multifamily housing market."

K Certificates provide Freddie Mac with a new vehicle to securitize multifamily loans, offer the market structured guaranteed securities with stable cash flows and with both structured credit enhancement and the Freddie Mac guarantee.  Traditionally, multifamily loans were held in Freddie Mac's mortgage-related investments portfolio.  Freddie Mac's most recent K Certificates offering, backed by approximately $1 billion of multifamily loans, settled on October 22, 2009.

The preliminary offering circular supplement relating to the K-005 Certificates can be found at http://www.freddiemac.com/mbs/data/k005oc.pdf. This announcement is not an offer to sell any Freddie Mac securities.  Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac's Annual Report on Form 10-K for the year ended December 31, 2008, filed with the Securities and Exchange Commission ("SEC") on March 11, 2009, and all documents that Freddie Mac files with the SEC pursuant to Section 13(a), 13(c) or 14 of the Securities Exchange Act of 1934, excluding any information "furnished" to the SEC on Form 8-K.

Freddie Mac's press releases sometimes contain forward-looking statements.  A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company's Annual Report on Form 10-K for the year ended December 31, 2008, and its reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investor Relations page of the company's Web site at www.FreddieMac.com/investors and the SEC's Web site at www.sec.gov.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

SOURCE Freddie Mac



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